Energy Office

FCIP.001 04/11

FCIP Participation Fees4% of the fi rst $100,000 of the project amount

3% of the next $400,000 of the project amount

2% of the next $500,000 of the project amount

1% of the next $4,000,000 of the project amount

½% of any project amount greater than $5,000,000

A Partial List of FCIP Participants

Bluestem USD 205Cherokee USD 247City of ColbyCity of ManhattanCity of SalinaEl Dorado Correctional FaciliyEllis CountyEllsworth Correctional FacilityEmporia USD 253Fairfi eld USD 310Fort Hays State UniversityHaven USD 312Hutchison Correctional FacilityIola USD 257Kansas Department of Wildlife and ParksKansas Scholl for the DeafKansas School for the BlindKansas State UniversityMarysville USD 364Municipal Services of OlatheNemaha County USD 442Norton Correctional FacilityOsage CountyPiper USD 203Pittsburg State UniversityPlainville USD 270Rawlins County USD 105Rock Creek USD 323Sabetha USD 411Sedgwick CountyShawnee CountySmith CountySoutheast of Saline USD 306Sumner Regional Medical CenterTonganoxie USD 464University of KansasUniversity of Kansas Medical CenterWichita CountyWichita State University

FCIP

Institutions eligible to participate in the FCIP include all state agencies, municipalities, counties, and public schools. To fi nd out if your institution is eligible, please call the Kansas Energy Offi ce/FCIP at 785-271-3352.

Step 1: The Preliminary AuditContact the Kansas Energy Offi ce/FCIP at 785-271-3352 to schedule a preliminary audit with one or more of our partner ESCOs. Th is initial site tour gives the ESCOs a general idea of what improvements need to be made and whether savings can be realized. Th ere is no cost to the customer for the preliminary audit.

Aft er the preliminary audit, we will help you schedule a meeting for the ESCO representa-tives to present their initial fi ndings.

Step 2: ESCO Selection and the Investment Grade AuditSelect the ESCO you wish to work with and schedule an investment-grade audit. Th is is a comprehensive site survey including analysis of equipment, utility bills, and customer needs.

Th e customer and the ESCO determine the scope of the audit, and a standard contract is signed by the customer, the ESCO, and the FCIP. Th e cost of the investment-grade audit is deeply discount-ed, based on rates pre-negotiated by the Kansas Energy Offi ce.

Th e ESCO delivers the fi nal audit report, outlin-ing a potential performance contract project. Th e audit cost is incorporated into the contract.

Step 3: The Energy Performance ContractA team consisting of key agency personnel, ESCO representatives, and FCIP staff reviews the investment grade audit and recommends a detailed package of improvements. Th e custom-er and the ESCO determine the fi nal scope of the project and an energy performance contract is signed by the customer, the ESCO, and FCIP.

Th e contract defi nes the terms of the guarantee, the Measurement and Verifi cation (M&V) pe-riod, and the construction schedule. Th e ESCO helps arrange fi nancing for the project and guarantees that the improvements will gener-ate energy cost savings suffi cient to pay for the project over the term of the contract.

Step 4: Measurement and Verifi cation (M&V)Because FCIP customers rely on the guaranteed energy savings to cover the repayment of fi nanced funds, the reduction in energy consumption must be verifi ed to determine whether the guarantee is being met. Th e FCIP requires ESCOs to utilize the industry standard “International Performance Measurement and Verifi cation Protocol” (IPMVP), in evaluating energy savings. M&V performed following the IPMVP ensures repeatable and verifi able savings calculations.

FCIP Participation FeeTh e FCIP provides specialized expertise and a project guaranteed to deliver energy and cost savings—through a simplifi ed process that allows your project to be implemented quickly, with minimal distraction to your core business.

Th e FCIP is a fee-funded program and uses no state general funds. Participation fees are determined by overall project costs.

FACILITY CONSERVATION IMPROVEMENT PROGRAM KANSAS ENERGY OFFICE 1500 SOUTH ARROWHEAD ROAD TOPEKA, KANSAS 66604 785-271-3352 WWW.KCC.KS.GOV/ENERGY/FCIP

Here’s how it works:

Energy OfficeFCIP

Facility Conservation Improvement ProgramENERGY PERFORMANCE CONTRACTING FOR K ANSAS PUBLIC BUILDINGS

Current maintenance costs

Current energy costs

Before FCIP improvements

Reduced maintenance costs

Reduced energy costs * Your savings

pay for the improvements

After FCIP improvements

Annual energy and

maintenance savings

can be substantial:

a good target is 15%

to 25% of your current

operating costs.

FCIP Partner ESCOs

Ameresco Burns & McDonnell Chevron Energy Solutions ConEdison Solutions Energy Solutions ProfessionalsEnergy Systems Group Honeywell Johnson Controls, Inc. Schneider Electric Trane

Energy conservation is the best way to reduce utility costs, but finding funds for capital improvements in today’s economic climate is difficult, if not impossible. Major facility upgrades are forced to take a back seat to the maintenance and repair of outdated, inefficient equipment, while rising utility costs increase the burden placed on strained budgets.

The Kansas Energy Office developed the Facility Conservation Improvement Program (FCIP) to enable public entities to fund energy-efficiency upgrades with guaranteed utility savings, through energy performance contracting. For governments, this means limited budgets can be allocated more effectively. Energy- efficient systems can increase your property’s value and marketability.

The FCIP is authorized by Kansas statute (KSA 75-37,125) to promote the implementa-tion of energy conservation improvements in public buildings by giving public entities an alternative to the standard low-bid procure-ment methods.

Energy performance contracting means your project pays for itselfWith an energy performance contract, no capital outlay or cash flow increase is required on the part of the owner — the guaranteed energy and maintenance savings offset 100% of the cost of improvements, over a maximum of 30 years. The contract can include language that obligates the contractor, a qualified Energy Services Company (ESCO), to pay the difference if at any time the savings fall short of the guarantee. After the finance period ends, all additional cost savings accrue to your agency.

One important advantage of energy perfor-mance contracting is that it allows you to use the “low-hanging fruit” of energy savings from quick-payback upgrades such as lighting, to leverage the purchase of more expensive items, such as boilers or chillers.

FCIP assists you through each step of your projectThe FCIP staff helps you negotiate the project that best suits your needs, and ensures that you fully understand the terms of your agreement before you sign it. We assist you through each step of your project through completion.

We serve as your advocate throughout the pro-cess, providing technical, legal, and financial oversight and guidance from the very begin-ning, attending meetings during the develop-ment and construction phases. We provide oversight of all project details, reviewing all audits and project documents, and setting maximum limits on construction markups. In addition, only the customer is allowed to initi-ate change orders, so you can be confident there will be no surprises during the implementation of your FCIP project.

We know you’re busy. The FCIP

lets you focus on your core

mission instead of navigating a

complex procurement process.

No RFPs. No bids. One contract.The FCIP is a turnkey program. The State of Kansas has pre-negotiated a master contract with ten nationally-recognized private Energy Service Companies (ESCOs) with offices in Kansas. These ESCOs have the focused exper-tise and experience to provide you with project identification and analysis, design and imple-mentation, maintenance, and measurement and verification.

As an FCIP participant, you are not required to issue exhaustive Requests for Proposals (RFPs). The State’s master contract satisfies the need for competitive bidding, and you may choose any of our pre-qualified ESCO partners to imple-ment your project. (See list, left.)

A tool for improving Kansas public buildings

Before Aft er Before Aft er

Before Aft er Before Aft er

FCIP Project Details

Oxford USD 358Oxford, Kansas

ESCO

Trane

Contract dates

March 2010 – August 201015-year guarantee term

Project size

6 buildings137,579 square feet

Contract amount

$1.93 million

Improvements

Lighting effi ciency upgradesWater effi ciency upgradesHVAC upgrades/replacementBoiler replacementWindow upgradesRoof upgradesBuilding automation systemsOccupancy sensors installedBuilding entryway repairs

Guaranteed annual savings

Electric usage: 1,189,572 kWhNatural gas usage: 6,499 MCFEnergy savings: 3,446 MMBTUTotal savings: $82,959

A tool for improving Kansas public buildings

[Clockwise from top left ] Middle School gymnasium: Replaced single-pane steel windows with new, aluminum thermal-break windows with double-pane insulating tinted glass.

High School: Replaced existing rooft op units, reconfi gured ductwork, connect-ed all equipment to building control unit, and overlaid existing roofi ng with Duro-Last® single-ply roofi ng glass.

High School: Replaced surface-mounted light fi xtures with higher-effi ciency recessed fi xtures & T8 bulbs.

Middle School: Replaced existing gas boiler with new high-effi ciency boiler.

In 2009, Oxford Unifi ed School District 358 ws facing mounting facility problems. Major mechanical equipment, including a boiler and rooft op HVAC units, was old, ineffi cient, and in need of replacement. Th e gymnasium was not air conditioned. A number of warranties had expired and some equipment had already failed. A substantial investment in the facility’s systems was necessary but hardly feasible.

Th e School Board wanted to reduce the district’s energy use as well as energy costs. School Superintendent Deborah Hamm had learned about performance contracting at a Kansas Green Schools event hosted by the Kansas State Department of Education (KSDE), and at the Kansas Association of School Boards (KASB) Winter Conference.

Th e school district worked with the FCIP and a partner ESCO (Trane) to develop a suitable energy performance contract. Th e $1.93 million project is being funded through the guaranteed savings realized. Th e total project will be paid for over a fi ft een-year period.

Th e overall annual savings in operations, maintenance, and utilities expenses are guaran-teed to be nearly $90,000 annually. (See project details, right.)

Th e work began in March, 2010 and was com-pleted in September, 2010. Th e signifi cant energy savings became apparent soon aft er the project began. USD 358 saw a $20,000 reduction in util-ity costs between July, 2010 and March, 2011.

USD 358 is guaranteed an annual

savings of nearly $90,000.

Refl ecting on the project and such a large in-vestment during a time of looming budget cuts, Superintendent Hamm feels that it was a wise decision: “Th e FCIP is a great opportunity for districts, especially those with older facilities that want to save money.”

FCIP CASE STUDY

Oxford Unifi ed School District 358

With the FCIP, USD 358 was able to make much-needed facility improvements.